There Are Fundamental Steps to Starting a Business

No one ever ran a successful business without putting in the time and effort to see it come to life. There are many necessary steps to starting a business if you want it to succeed and be the place you envisioned. While there is no one set formula to follow which fits every business in every economic climate, there are shared steps most startup businesses need to be aware of.

Some are practical and common sense, while other steps are legal maneuvers to keep your startup protected and legitimate.

The first step is to do the leg work as far as research is concerned. You have to study the market and consumer base you wish to tap into. Preparing a business plan is always the first step on paper which will bring your dream into reality. A good business plan will help you understand your competition and marketability. A business plan will also outline the capital you will need. One statistic puts businesses with a solid business plan at having a 50% higher rate of success over those who don’t.

You then have to set forth and find the training and counseling services available in your area. Everyone knows knowledge is power and the same applies to the business world. Whether you have a business degree already or no formal education, utilizing the free training or seminars in your area will only serve to increase your understanding of the business world. Business climates change rapidly. Any additional training or advice you can receive will keep your startup plans current and relevant in a changing economy. You can check out resources online or even contact your local chamber of commerce for assistance. They will be more than willing to help you find the proper resources and training.

Your startup will need a location or operating base regardless of what industry it involves. You will have to research zoning laws and examine the ideal location before you can begin any startup proceedings. Your choice of location will determine your visibility to potential customers. You also need to know if the space is the appropriate size for your new business, if it can house the supplies, inventory or equipment you will need.

All startup businesses require some form of finance. Even if you have worked hard to fully fund your startup independently, looking into additional resources is the smartest way to financially get your business going. You can look to traditional loans, government loans, venture capital opportunities, or tap into the plethora of grant options available. Every individual business will have different needs. You might need startup money for your retail space, equipment, and website capabilities. Everything that you don’t have already will need to be bought with capital from somewhere.

Next, you must determine your legal structure. This involves deciding if you are going to be the sole proprietor or if you will have partners. You also need to legally take action to be known as a corporation, LLC, not for profit, or other legal distinctions available. This should be based on the size and equity involved in your startup business. This choice will determine your liability and taxes. As your business changes and develops, your legal structure can be changed also.

Once you have taken these essential steps, you must register your business name with the government. This will lead to your establishment as an existing business. You will receive a tax identification number which will be used by just your business. Aside fro legal issues, naming your business is a strategic move not to be taken lightly. It will set you apart from your competition and brand your company in the eyes of the public.

You will then have to register with your state and local government for tax reasons. This will establish your businesses workers compensation capabilities and disability insurance options. Without these legal maneuvers, you open yourself up to instant financial failure and liability if something should ever go wrong. As a business, your rights and the rights of those you hire are paramount and need to be established through these legal formalities.

As for your physical business, getting the required licenses and permits is also a necessary step to starting your own business. These are required by federal, state and local law and ordinances. It will also be vital to investigate and follow the legal channels necessary to hire employees to work for you.

Once you have carefully followed these fundamental steps, you can begin experiencing the part of operating your own business you envisioned in the beginning. You will be able to enjoy watching your business and hard work take on a life of its own and become what you imagined.